Shutdown talks
A bipartisan group of senators are “discussing several different potential off-ramps involving the enhanced Obamacare subsidies,” including “the possibility of holding two side-by-side votes intended to end the shutdown,” Punchbowl News reports this morning. The idea, which would allow for a one-year extension of the Obamacare enhanced premium tax credits, is a long shot, given lawmakers’ current positioning: House Minority Leader Hakeem Jeffries (D-N.Y.) has rejected a one-year extension, and Republicans have ruled out tying the policy to funding talks.
Meanwhile, a federal judge blocked the Trump administration’s plans to fire thousands of federal workers during the shutdown as White House budget director Russell Vought threatened “layoffs to exceed more than 10,000 people,” per Bloomberg News. The decision, which the administration could challenge, is not final and is limited to “programs that affect labor union members who sued.”
Defense bill
The Senate is poised to hold a procedural vote on the Defense appropriations bill today. According to Politico, Senate Majority Leader John Thune (R-S.D.) said he’s also hoping to tack on appropriations measures to fund the departments of Labor and Health and Human Services. The move could put some pressure on Democrats, who have pushed for progress on “regular order” spending bills amid the shutdown but are also cognizant that OKing a piecemeal approach could undermine their broader negotiating position.
Russia-Ukraine war
Trump is planning to meet tomorrow with Ukrainian President Volodymyr Zelenskyy. Speaking with reporters last night, Trump said the Ukrainians “want to go offensive” against Russia as the country’s leader seeks Tomahawk long-range missiles and air defense systems, Politico reported.
Trade
Treasury Secretary Scott Bessent floated the idea of a longer pause on tariffs on Chinese goods if Beijing pauses its plan for new export controls on rare-earth minerals. Both Chinese and American officials are attempting “to stack up bargaining chips” ahead of an expected meeting on the sidelines of the Asia-Pacific Economic Cooperation summit in South Korea this month, Bloomberg News noted.
Alongside the bilateral dealing, U.S. Trade Representative Jamieson Greer is facing pressure at home. Per Axios, key Senate Republicans from big soybean-producing states grilled Greer about relief for American soybean farmers struggling amid the trade war after the Trump administration announced what’s now a $40 billion bailout for Argentina.
